Secured vs. Unsecured Credit Cards
Secured and unsecured credit cards can be used to pay for goods and services. However, a secured credit card requires you to open and maintain a savings account as security for your line of credit; an unsecured card does not. A secured credit card can be the perfect no credit credit cards for consumers.
The required savings deposit for a secured credit card may range from a few hundred to several thousand dollars. Your credit line is a percentage of your deposit, typically 50 to 100 percent. Usually, a bank will pay interest on your deposit. In addition, you also may have to pay a minimal application and processing fee.
Before you apply for no credit credit cards, be sure to ask what the total fees are and whether they will be refunded if you’re denied a card. Typically, a secured credit card requires an annual fee and has a higher interest rate than an unsecured credit card.
Credit Reporting
If you’re considering a secured card as a way to build or re-establish a credit record, make sure the issuer reports to a credit bureau. Your credit history is maintained by companies called credit bureaus; they collect information reported to them by banks, mortgage companies, department stores, and other creditors. If the no credit credit cards issuer doesn’t report to a bureau, the card won’t help you build a credit history.
For More Information
To build a credit record, you may want to apply for a charge card or a small loan at a local store or lending institution. Ask if the creditor reports transactions to a credit bureau. If they do — and if you pay back your debts regularly — you will build a good credit history.
If you cannot get credit on your own, you can ask a relative or friend with a good credit history to act as your cosigner. The cosigner promises to repay the debt if you don’t.
If you’re having problems paying bills, you may want to contact our credit counseling service. We are offer free credit counseling in every state to counsel consumers who are in debt. If necessary, our counselors try to arrange a repayment plan that is acceptable to you and your creditors.
We also can help you apply for no credit credit cards. These counseling services are offered at little or no cost to consumers. You can find the office nearest you by contacting us at 1-888-502-3907.
Sometimes, personal counseling appointments are made at universities, military bases, credit unions, and housing authorities.
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